- VanEck is strategically changing its crypto offerings in response to changing market dynamics.
- The firm has offered detailed explanations of what this shift will require of customers.
- It is not the first time that VanEck has made such a decision.
For a while, the only regulated way institutions could gain exposure to crypto was through futures exchange-traded products. Following the approval of spot ETFs backed by Bitcoin and ether , however, this has all changed.
Responding to the new dynamics, VanEck, a firm that offers both futures and spot ether products, has disclosed a strategic shift.
VanEck Unveils Ether Futures ETF Liquidation Plan
VanEck is making a change to its list of ether ETF offerings. In a press release on Friday, September 6, the firm disclosed that it planned to liquidate its ether futures offering.
Sponsored
While VanEck did not explicitly specify the reason for the decision, it is likely linked to investors moving away from the futures product to the recently approved spot, which allows better asset value tracking.
"As the sponsor of VanEck ETFs, VanEck continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management, and investor interest, among others. The decision was made to liquidate the Fund based on an analysis of these factors and other operational considerations," the firm's statement read.In an X post sharing the statement, however, the firm wrote:
"Now that our spot ethereum ETP has been approved, we are closing our ETF that invested in ethereum futures."Specifically, VanEck disclosed that the ether futures ETF product will stop trading on September 16 and fully liquidate on September 23. The investment management firm noted that investors could sell their shares before the end of trading or get the cash equivalent of the value of their shares once the fund is liquidated and any owed earnings.
As of Thursday, September 5, VanEck’s ether futures ETF EFUT had just over $21 million in assets under management. In comparison, the firm’s spot product ETHV had about $55.5 million.
Meanwhile, VanEck’s decision to close a futures ETF offering and focus on a spot offering is nothing new for the firm.
Modus Operandi?
In January 2024, VanEck announced plans to liquidate its Bitcoin Strategy ETF shortly after the SEC approved spot ETFs, offering similar reasons as outlined in its recent Ethereum futures ETF decision.
“As the sponsor of VanEck ETFs, VanEck continuously monitors and evaluates its ETF offerings across a number of factors, including performance, liquidity, assets under management, and investor interest, among others. The decision was made to liquidate the Fund based on an analysis of these factors and other operational considerations,” the firm’s statement also read at the time.
VanEck’s spot Bitcoin ETF offering, however, also continues to run with over $605 million in assets under management as of September 5.
On the Flipside
- VanEck’s spot Ethereum ETF remains open for trading.
- Institutional investors seeking Ethereum futures exposure can do so with offerings from other asset managers, such as ProShares and Ark 21Shares.
Why This Matters
ETFs have been the leading crypto narrative in 2024. The success of spot Bitcoin ETFs has been credited with playing a major role in the rebound of crypto markets in Q1 2024.
Read this for more on Ethereum ETFs:
Why Bitcoin and Ethereum ETF Outflow Streak Might Not Be Over Yet
Find out why Ethereum’s Vitalik Buterin is planning to no longer invest in Layer 2 chains:
Why Ethereum’s Vitalik Is Steering Clear of L2 Investments for the “Foreseeable Future”
